Banks have unveiled their student accounts for teenagers starting university
this autumn - with some standing out more than others.

These student accounts typically come with an interest-free overdraft and perks to attract new customers.

Santander is offering a free Young Person's Railcard, worth £30 a year, that lasts four years. The account comes with a £1,500 interest-free overdraft for the first three years and 1pc interest on balances of up to £500.

HSBC is offering 10 students the chance to win £10,000 in a bursary competition as well as up to 18 free music albums from Sony over three years. Its interest-free overdraft is up to £3,000 in the first year. Students earn 2pc interest on balances of up to £1,000 for a year.

Royal Bank of Scotlandoffers a shopping discount card and Tastecard membership worth £79.95, which includes half price deals at thousands of restaurants. Its interest-free overdraft starts at £1,000 in the first year, rising to £1,500 in the third.

Barclays offers a £2,000 interest-free overdraft from day one and a 10pc discount on travel insurance.

Lloyds TSBoffers a free NUS Extra card for three years, worth £12 a year, which provides hundreds of discounts, alongside £75 off a holiday booking with STA Travel. The interest-free overdraft for the first three years is £1,500.

Halifax offers credit interest of 0.1pc to students, a £3,000 interest-free overdraft from year one and 25pc off AA breakdown cover.

Verdict:

Historically banks have tempted students with MP3 music players or shopping vouchers. They know that anyone enticed in is unlikely to bother switching banks when they leave university.

This year the incentives are more practical, allowing students and parents to focus on picking an account with genuinely useful facilities, such as good overdraft buffers and service.

One perk, though, stands out above all others – Santander's Young Person's Railcard. A saving of £120 over four years is worth having. It cuts a third off train fares and can be linked to an Oyster card in London. NatWest ran a similar offer until recently and managed to attract an entire generation of students.

HSBC and Halifax undoubtedly have the best interest-free overdrafts at £3,000, provided that a student qualifies for this maximum amount. Parents can help by stressing the value of interest-free loans during study years, pointing out that they must be repaid, and by reminding young students to reassess the account when they graduate.